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Fool Canada’s first 1,000%+ winner?

Our Chief Investment Advisor, Iain Butler, and a team of The Motley Fool’s most talented investors from across the globe recently embarked on an unprecedented mission:

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2 Stocks to Buy With Dividends Yielding Over 3%

If you’re looking for high-quality dividend stocks that pay better-than-average yields, then you’ve come to the right place. Let’s take a quick look at two that you could buy right now.

Chartwell Retirement Residences

Chartwell Retirement Residences (TSX:CSH.UN) is the largest owner and operator of senior residences in Canada. As of December 31, 2016, its portfolio consists of 188 communities, including 133 fully owned, 46 partially owned, and nine managed communities that are located across Ontario, Quebec, British Columbia, and Alberta

Chartwell currently pays a monthly distribution of $0.048 per unit, representing $0.576 per unit on an annualized basis, which gives its stock a yield of about 3.7% at today’s levels.

In addition to being a high yielder, Chartwell is an up-and-coming distribution-growth star. It has raised its annual distribution each of the last two years, and its 2.5% hike in February has it positioned for 2017 to mark the third consecutive year with an increase.

I think Chartwell can continue to grow its distribution for many years to come. I think its very strong financial performance, including its 13.3% year-over-year increase in adjusted funds from operations (AFFO) to $0.85 per unit 2016, its greatly improved payout ratio, including 65.4% of its AFFO in 2016 compared with 72.6% in 2015, and the growing demand for senior care services, which can be attributed to Canada’s aging population, will allow its streak of annual distribution increases to continue into the 2020s.

Royal Bank of Canada

Royal Bank of Canada (TSX:RY)(NYSE:RY), or RBC for short, is Canada’s second-largest bank as measured by assets with approximately $1.16 trillion as of January 31. It offers a wide range of financial products and services to over 16 million customers in Canada, the United States, and 35 other countries around the world.

RBC currently pays a quarterly dividend of $0.87 per share, representing $3.48 per share on an annualized basis, which gives its stock a yield of about 3.6% today.

Like Chartwell, RBC has shown a dedication to growing its dividend, but it’s a proven star rather than an up-and-comer. It has raised its annual dividend payment each of the last six years, and its two hikes in the last 10 months, including its 2.5% hike in August 2016 and its 4.8% hike in February of this year, have it on pace for 2017 to mark the seventh consecutive year with an increase.

I think RBC is a top pick for dividend growth going forward as well. It has a target dividend-payout range of 40-50% of its net income available to common shareholders, so I think its continued growth, including its 3.9% year-over-year increase to $10.11 billion in 2016 and its 24.3% year-over-year increase to $2.94 billion in the first quarter of 2017, and its improved payout ratio, including 41.9% in the first quarter of 2017 compared with 47.6% in fiscal 2016, will allow its streak of annual dividend increases to continue for another seven years at least.

Which should you buy today?

Chartwell Retirement Residences and RBC would make great additions to any Foolish portfolio, so take a closer look and strongly consider adding one of them to yours.

1 Massive Dividend Stock to Buy Today (7.8% Yield!) - The Dividend Giveway

The Motley Fool Canada's top dividend expert and lead adviser of Dividend Investor Canada, Bryan White, recently released a premium "buy report" on a dividend giant he thinks everyone should own. Not only that - but he's created a must-have, exclusive report that outlines all the alarming traits of dividend stocks that are about to blow up - and how you can avoid them.

For this limited time only, we're not only taking 57% off Dividend Investor Canada, but we're offering you special access to two brand-new reports, free of charge upon signing up. They will outline everything you need to know so you steer clear of dividend burn-outs AND take advantage of the dividend giants in the Canadian market.

While this offer is still available, you can find out how to get a copy of these brand-new reports by simply clicking here.

Fool contributor Joseph Solitro has no position in any stocks mentioned.

NEW! This Stock Could Be Like Buying Amazon In 1997

For only the 5th time in over 14 years, Motley Fool co-founder David Gardner just issued a Buy Recommendation on this recent Canadian IPO.

Stock Advisor Canada’s Chief Investment Adviser, Iain Butler, also recommended this company back in March – and it’s already up a whopping 57%!

Enter your email address below to find out how you can claim your copy of this brand new report, “Breakthrough IPO Receives Rare Endorsement.”

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